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Describe pricing strategy with regards to consumer wants

You are an executive for a large multinational corporation and are meeting with other managers (your classmates) to discuss the following topic: Is the right price a fair price?

Prices are often set to satisfy demand or to reflect the premium that consumers are willing to pay for a product or service. Some critics shudder, however, at the thought of $2 bottles of water, $150 running shoes, and $500 concert tickets.

Take a position:
Prices should reflect the value that consumers are willing to pay.
vs.
Prices should primarily just reflect the cost involved in making a product or service.

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Prices should reflect the value that consumers are willing to pay.

In the market, there are many different options available to consumers - from low end products to high end designer one.

If you walk into a grocery store, you can see an entire row of water bottles. Some are marked with store brands, while others are designers ones (i.e. - No name vs. Evian). This is normal and much expected since there are different types of consumers. Some consumers want the cheapest price - and they will buy the NO ...

Solution Summary

This posting will investigate pricing strategies and look at prices in the market.